SENATE, No. 863
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 26, 1996
By Senator CARDINALE
An Act concerning the certification of burglar alarm, fire alarm and electronic security businesses, supplementing Title 52 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Burglar Alarm, Fire Alarm and Electronic Security Business Certification Act."
2. As used in this act:
"Alarm business" means the installation, servicing or maintenance of burglar alarm, fire alarm or electronic security systems, or the monitoring or responding to alarm signals when provided in conjunction therewith. "Installation," as used in this definition, includes the survey of a premises, the design and preparation of the specifications for the equipment or system to be installed pursuant to a survey, the installation of the equipment or system, or the demonstration of the equipment or system after the installation is completed. "Installation" does not include any survey, design or preparation of specifications for equipment or for a system which is prepared by an engineer licensed pursuant to the provisions of P.L.1938, c.342 (C.45:8-27 et seq.), or an architect licensed pursuant to the provisions of chapter 3 of Title 45 of the Revised Statutes if the survey, design, or preparation of specifications is part of a design for construction of a new building or premises or a renovation of an existing building or premises, which renovation includes components other than the installation of a burglar alarm, fire alarm or electronic security system. "Installation" also does not include the design or preparation of specifications for the equipment or system to be installed that is within the practice of professional engineering as defined in subsection (b) of section 2 of P.L.1938, c.342 (C.45:8-28).
"Alarm contractor" means an individual, partnership, corporation, limited liability company or other business entity engaged in the alarm business.
"Burglar alarm" means a security system comprised of an interconnected series of alarm devices or components, including systems interconnected with radio frequency signals, which emits an audible, visual or electronic signal indicating an alarm condition and providing a warning of intrusion, which is designed to discourage crime.
"Business firm" means a partnership, corporation or other business entity engaged in the alarm business.
"Committee" means the Burglar and Fire Alarm Certification Advisory Committee created by section 4 of this act.
"Director" means the Director of the Division of Codes and Standards in the Department of Community Affairs.
"Electronic security" means a security system comprised of an interconnected series of devices or components, including systems with audio and video signals or other electronic systems, which emits or transmits an audible, visual or electronic signal warning of intrusion and provides notification of authorized entry or exit, which is designed to discourage crime.
"Fire alarm" means a security system comprised of an interconnected series of alarm devices or components, including systems interconnected with radio frequency signals, which emits an audible, visual or electronic signal indicating an alarm condition and provides a warning of the presence of smoke or fire. "Fire alarm" does not mean a system whose primary purpose is telecommunications with energy control, the monitoring of the interior environment being an incidental feature thereto.
"State certified alarm contractor" means an alarm contractor who is certified by the director as a State certified alarm contractor pursuant to this act.
3. The director shall:
a. Administer and enforce the provisions of this act;
b. Within 90 days following the effective date of this act, and as necessary thereafter, promulgate, in consultation with the committee, rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act;
c. Examine and pass on the qualifications of all applicants for certification under this act and issue a certificate to each qualified applicant;
d. Maintain a record of all applicants for certification, showing for each the date of application, name, age, qualifications, place of business and place of residence, and whether the application was rejected or a certificate granted, and the date of such action;
e. Establish, after consultation with the committee, professional standards for State certified alarm contractors and their employees;
f. Exercise any investigative powers and impose any of the penalties provided in sections 18 through 23 of this act, as necessary or appropriate;
g. Conduct hearings pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.);
h. Conduct proceedings before any court of competent jurisdiction for the enforcement of the provisions of this act;
i. Annually publish a list of the names, places of business and residences of all State certified alarm contractors;
j. Establish and revise the charges for certificates, certificate renewals, and other services performed; and
k. Be empowered to do such other things as may be necessary to effectuate the purposes of this act.
4. In order to advise the director in the administration of the provisions of this act, there is created in the Division of Codes and Standards in the Department of Community Affairs, a Burglar and Fire Alarm Certification Advisory Committee. The committee shall be comprised of nine members to be appointed by the Governor, with the advice and consent of the Senate, for terms of three years, except that of the members first appointed, three shall serve for one year, three shall serve for two years and three shall serve for three years. Three members of the committee shall have been engaged, on a full-time basis, in the alarm business for at least five consecutive years immediately preceding their appointments and, except for the members first appointed, shall be certified under the provisions of this act; one committee member shall be a member of the Division of State Police, one shall be a member of the bureau of fire safety in the Division of Codes and Standards in the Department of Community Affairs, two shall be electrical contractors licensed by the Board of Examiners of Electrical Contractors under "The Electrical Contractors Licensing Act of 1962," P.L.1962, c.162 (C.45:5A-1 et seq.), and two shall be public members and residents of the State without any association with the alarm business.
Each member shall hold office for the term of appointment and until his successor is appointed and qualified. A member is eligible to be reappointed to the committee. A member appointed to fill a vacancy occurring in the membership of the committee for any reason other than the expiration of the term shall have a term of appointment for the unexpired term only. All vacancies shall be filled in the same manner as the original appointment.
5. No person shall assume or use the title or designation "State certified alarm contractor" or the abbreviation "SCAC" or any other title, designations, letters, abbreviations or signs indicating that such person is a State certified alarm contractor, unless such person holds a current, valid certificate as a State certified alarm contractor pursuant to this act.
6. a. Application for certification shall be made to the director in the manner and on the forms as the director may prescribe. An application shall include the name, age, residence and present and previous occupations of the applicant, and, in the case of a business firm, of each member, officer or director thereof; the name of the municipality and the location therein by street number or other appropriate description of the principal place of business and the location of each branch office; and the license plate number, vehicle identification number, make, year, and color of each vehicle to be used in conjunction with the alarm business.
b. An applicant shall submit to the director, together with the application, his photograph, in passport size, a list of all criminal offenses of which he has been convicted, setting forth the date and place of each conviction and the name under which he was convicted, if other than that on the application, and fingerprints of his two hands taken on standard fingerprint cards by a State or municipal law enforcement agency. Before approving an application, the director shall submit the fingerprints of the applicant to the Division of State Police in the Department of Law and Public Safety, for comparative analysis. The director is authorized to exchange fingerprint data with and receive criminal history record information from the Division of State Police and the Federal Bureau of Investigation for use in making the determinations required by this act. The applicant shall bear the cost for the criminal history record check. No certificate shall be issued to any applicant whose certificate of certification under this act has been revoked under the provisions of this act within five years of the date of filing of an application.
c. If an applicant files with the director fingerprints of a person other than the applicant, he shall be guilty of a crime of the fourth degree and shall have his application for certification denied or certificate of certification revoked.
d. The director may require other information of the applicant and, if the applicant is proposing to qualify a business firm, of the business firm to determine the professional competence and integrity of the concerned parties.
7. An applicant for certification under the provisions of this act shall:
a. Be at least 18 years of age;
b. Meet qualifications established by the director regarding experience, financial responsibility and integrity; and
c. Establish his qualifications to perform and supervise various phases of alarm installation, service and maintenance as evidenced by successful completion of an examination to be prescribed by the director, after consultation with the committee.
8. a. When an individual proposes to do business in his own name, he shall so state on the application for certification, and the certificate of certification, if granted, shall be issued only to that individual.
b. If the applicant is proposing to qualify a business firm, the application shall state the name or names of the partnership and its partners, or of the corporation and its officers and directors, or of such other business firm and its members. The application shall show that the person applying for the certificate of certification is legally qualified to act for the business firm in all matters connected with its alarm business, and that he has authority to supervise the work undertaken by the business firm. The certificate of certification, when issued upon application to qualify a business firm, shall be in the name of the business firm, with the name of the qualified individual noted thereon.
c. (1) In the case of a business firm, at least one individual legally qualified to act for and supervise the work performed by the business firm in matters connected with the alarm business shall be certified under this act in order for the business firm to continue in the alarm business as a State certified alarm contractor. If that individual so qualified and certified ceases to be affiliated with the business firm in that capacity, the business firm shall, in writing, so inform the director within 30 days of the termination of affiliation, and shall within 45 days following termination, requalify for certification pursuant to subsection b. of this section. No business firm shall continue in the alarm business as a State certified alarm contractor after expiration of the 45 day period, unless a new certificate of certification has been issued.
(2) A certificate of certification issued pursuant to this act shall not be transferable.
d. Certificates of certification shall be issued to qualified applicants for a three-year period, upon payment of a filing fee. Certificate renewals shall be issued for a three-year period upon the payment of a renewal fee. A renewal application shall be filed with the director at least 45 days prior to expiration of a certificate.
9. A certificate of certification shall be in a form prescribed by the director and shall set forth the full name of the applicant, the alarm business name under which the applicant is authorized to operate, the location of the principal office of the alarm business and the location of each branch office for which the certificate is issued, the issuance and expiration dates of the certificate, and any other information required by the director. In the event of any change in the partners, officers, directors or members of the business firm, any change in the address of any branch office or principal office of the business, any change in the information submitted in the application for a license concerning the vehicles to be used in conjunction with the alarm business, or if the State certified alarm contractor ceases to be affiliated with the business firm, the director shall be notified in writing of the change within 30 days thereafter. Failure to give proper notification shall be sufficient cause for revocation of the certificate of certification of the alarm business.
10. The certificate of certification, or a certified copy thereof, shall be posted and, at all times thereafter while the certificate of certification is in force, be displayed in a conspicuous place in the principal office and in each branch office for which it is issued. In the event that any certificate or certified copy thereof issued by the director is lost or destroyed, notice of the loss or destruction shall be given to the director immediately, and the director may issue a duplicate or certified copy thereof. Upon written application to the director setting forth a change in the location of any branch office or principal place of business as set forth in the certificate of certification, the director may authorize the change, in which case the certificate of certification and all copies thereof shall be surrendered to the director, and the director may either endorse thereon the change or issue a new certificate as of the same date as the original certificate in lieu of the certificate so surrendered. Appropriate fees therefor shall be established by the director.
11. A State certified alarm contractor shall:
a. Maintain at least one business office within the State or file in the office of the director a statement, duly executed and sworn to before a person authorized by the laws of this State to administer oaths, containing a power of attorney constituting the director the true and lawful attorney of the contractor upon whom all original process in an action or legal proceeding against the contractor may be served and in which the contractor agrees that the original process that may be served upon the director shall be of the same force and validity as if served upon the contractor and that the authority thereof shall continue in force so long as the contractor engages in the alarm business in this State as a State certified alarm contractor;
b. Clearly marks the outside of each installation and service vehicle to be used in conjunction with the alarm business with the alarm business name;
c. Maintains an emergency service number attended to on a 24-hour basis and responds appropriately to emergencies on a 24-hour basis; and
d. Retains at all times general liability insurance in an amount determined by the director and insurance coverage or a surety bond or sufficient assets for coverage in amounts as the director deems appropriate for the benefit of any person injured by the malicious, willful or wrongful conduct of the contractor or any employee thereof.
12. Every person employed by a State certified alarm contractor to install, service or maintain a burglar alarm, fire alarm or electronic security system, except in the case of an individual certified pursuant to the provisions of this act, shall:
a. Be of good moral character; and
b. If the work is to be performed other than under the field supervision of an individual certified pursuant to the provisions of this act, have at least three years of practical experience in the alarm business and shall have successfully completed a course of study or a competency examination prescribed by the director after consultation with the committee.
13. a. Within 14 days of a State certified alarm contractor employing a person in connection with the alarm business, the contractor shall notify the director and shall provide him with the employee's photograph, in passport size, fingerprints of the employee's two hands taken on standard fingerprint cards by a State or municipal law enforcement agency, a list of all criminal offenses, supplied by the employee, of which the employee has been convicted, setting forth the date and place of each conviction, and the name under which the employee was convicted, if other than that given in the written notification to the director, and, if the work of the employee is not to be directly supervised by an individual certified pursuant to the provisions of this act, evidence of practical experience and professional competence in accordance with the requirements of subsection b. of section 12 of this act.
b. If a State certified alarm contractor knowingly falsifies any information required by the director pursuant to this section, the contractor shall be guilty of a crime of the fourth degree and shall have the certificate of certification revoked therefor by the director.
c. After confirming the information provided on the employee with the Division of State Police in the Department of Law and Public Safety and conducting such other investigations as may be necessary, the director shall, if he determines that the employee fails to satisfy the requirements of section 12 of this act, advise the contractor forthwith of the employee's unfitness and require immediate termination of employment. The director is authorized to exchange fingerprint data with and receive criminal history record information from the Division of State Police and the Federal Bureau of Investigation for use in making the determinations required by this act. The employer shall bear the cost for the criminal history record check pursuant to this section.
14. Every State certified alarm contractor and every employee thereof engaged in the unsupervised installation, servicing or maintenance of burglar alarm, fire alarm or electronic security systems shall, at all times during working hours, display an identification card issued by the director. The identification card shall contain the following information:
a. The name, photograph and signature of the person to whom the card has been issued;
b. The business name and address and certificate number of the State certified alarm contractor;
c. The expiration date of the card; and
d. Such other information as the director deems appropriate for identification purposes.
15. Identification cards shall be issued for a three-year period which, in the case of an individual certified pursuant to the provisions of this act, shall correspond to the term of the certificate of certification of the State certified alarm contractor. Application for renewal of an identification card for other than an individual certified pursuant to the provisions of this act shall be made by the person named on the card at least 45 days prior to the expiration date of the card. The information provided on the identification card shall at all times be current, and the named holder of the card shall advise the director of any changes and file for issuance of an updated card within five days following occurrence of a change, which card shall be issued for the unexpired term of the original card.
Identification cards shall not be transferable in the event of a change in employment.
The director shall prescribe the manner of, and the forms and fees for filing for identification cards.
16. A State certified alarm contractor shall be responsible for any unlawful or unprofessional conduct by an employee, except that the conduct shall not be a cause for suspension or revocation of a certificate of certification, unless the director determines that the State certified alarm contractor had knowledge thereof, or there is shown to have existed a pattern of unlawful or unprofessional conduct.
17. A State certified alarm contractor shall maintain, on a form prescribed by the director, a record of the name and address of each purchaser of a burglar alarm, fire alarm or electronic security system that was installed by the contractor, where it was installed, the name and business address of the contractor, and any other information required by the director. These records shall be maintained by the contractor for a period of time determined by the director by regulation.
18. The director may refuse to admit a person to examination, or may refuse to issue, or may suspend or revoke a certificate of certification or employee's identification card, or may impose alternative penalties or pursue any civil remedy, if the applicant, certificate holder, or holder of an employee's identification card:
a. Has obtained a certificate of certification or employee's identification card, or authorization to sit for an examination, as the case may be, through fraud, deception or misrepresentation;
b. Has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;
c. Has engaged in gross negligence, gross malpractice or gross incompetence;
d. Has engaged in repeated acts of negligence, malpractice or incompetence;
e. Has engaged in occupational misconduct as defined in regulations promulgated pursuant to this act;
f. Has been convicted of any crime relating adversely to his activities in an alarm business. For the purpose of this subsection a plea of guilty, non vult, nolo contendere or any similar disposition of alleged criminal activity is deemed a conviction;
g. Has had his authority to engage in the activities of an alarm business revoked or suspended by any other state, agency or authority for reasons consistent with this section;
h. Has violated or failed to comply with the provisions of any act or regulation administered by the director;
i. Is incapable, for medical or any other good cause, of discharging the functions of a certificate holder or holder of an employee's identification card in a manner consistent with the public health, safety and welfare; or
j. Has violated any of the provisions of this act, including permitting a certificate of certification or identification card to be used by a person other than to whom it was issued.
19. Whenever it shall appear to the director that a person is violating or has violated any provision of this act or a regulation promulgated pursuant to this act, or when the director shall deem it to be in the public interest to inquire whether any violation may exist, the director may exercise any of the following investigative powers:
a. Require any person to file on such form as may be prescribed, a statement or report in writing under oath, or otherwise, as to the facts and circumstances concerning the rendition of any service or conduct, or the discharge of any act or practice subject to this act or a regulation promulgated pursuant to it by the director;
b. Examine under oath any person in connection with any act or practice subject to this act or a regulation promulgated pursuant to it by the director;
c. Inspect any premises from which an alarm business of a State certified alarm contractor is conducted;
d. Examine any goods, wares or items used in the rendition of the alarm business of a State certified alarm contractor;
e. Examine any record, book, document, account or paper maintained by or for a State certified alarm contractor in the regular course of that business;
f. For the purpose of preserving evidence of an unlawful act or practice, and pursuant to an order of the Superior Court, Law Division, impound any record, book, document, account, paper, goods, wares, or items used or maintained by or for any State certified alarm contractor in the regular course of that business. In such cases as may be necessary, the Superior Court, Law Division may, on application of the director, issue an order sealing items or materials subject to this subsection.
In order to accomplish the objectives of this act or any regulation promulgated pursuant to it, the director may hold such investigative hearings as may be necessary and may issue subpoenas to compel the attendance of any person or the production of books, records or papers of any person, or the production of books, records or papers at any hearing or inquiry.
20. If any person fails or refuses to file any statement or report or refuses access to premises from which an alarm business of a State certified alarm contractor is conducted in any lawfully conducted investigative matter or fails to obey a subpoena issued pursuant to this act, the director may apply to the Superior Court, Law Division and obtain an order:
a. Adjudging the person in contempt of court;
b. Granting other relief as may be required; or
c. Suspending the certificate of certification or identification card of the person until compliance with the subpoena or investigative demand is affected.
21. If any person refuses to testify or produce any book, paper, or other document in any proceeding under this act for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him, convict him of a crime, or subject him to a penalty or forfeiture, and shall, notwithstanding, be directed to testify or to produce the book, paper or document by the director, he shall comply with the direction. No action shall be taken by the director pursuant to this section without the approval of the Attorney General.
A person who is entitled by law to, and does assert his privilege not to testify or respond, and who complies with the direction of the director, shall not thereafter be prosecuted or subjected to any penalty or forfeiture in any criminal proceeding which arises out of and relates to the subject matter of the proceeding. No person so testifying is exempt from prosecution or punishment for perjury or false swearing committed by him in giving testimony or from any civil or administrative action arising from the testimony.
22. In addition or as an alternative, as the case may be, to revoking, suspending or refusing to renew any certificate of certification or employee's identification card, the director may, after affording an opportunity to be heard:
a. Issue a letter of warning, reprimand or censure with regard to any act, conduct or practice, which in the judgment of the director, does not warrant the initiation of formal action;
b. Assess civil penalties in accordance with this act;
c. Order any person violating any provision of this act, or a regulation promulgated pursuant to it, to cease and desist from future violations thereof or to take such affirmative corrective action as may be necessary with regard to any act or practice found in violation by the director;
d. Order any person found to have violated any provision of this act, or a regulation promulgated pursuant to it, to restore to any person aggrieved by an unlawful act or practice, any moneys or property, real or personal, acquired by means of that act or practice; except that no restoration shall be ordered in a dollar amount greater than those moneys received by a State certified alarm contractor or its agent;
e. Order any person, as a condition of continued, reinstated or renewed certification or use of an identification card, to secure medical or other professional treatment which may be necessary to properly discharge the functions of a State certified alarm contractor or holder of an identification card.
The director may, upon a duly verified complaint alleging an act or practice violating any provision of this act or a regulation promulgated pursuant to it, enter a temporary order suspending or limiting any certificate of certification or identification card pending a plenary hearing on an administrative complaint; except that no temporary order may be entered unless the complaint demonstrates a clear and imminent danger to the public health, safety and welfare and notice of the complaint is given to the certificate holder or holder of the identification card affected by the order.
In any administrative proceeding commenced on a complaint alleging a violation of this act or a regulation promulgated pursuant to it, the director may issue subpoenas to compel the attendance of witnesses or the production of books, records or documents at the hearing on the complaint.
23. Any person violating any provision of this act, or a regulation administered pursuant to it, in addition to any other sanctions provided in this act, is liable to a civil penalty of not more than $2,500 for the first offense and not more than $5,000 for each subsequent offense. For the purpose of construing this section, each transaction or statutory violation shall constitute a separate offense; except that a second or subsequent offense is not deemed to exist unless an administrative or court order has been entered in a prior, separate, and independent proceeding. In lieu of an administrative proceeding or an action in Superior Court, Law Division, the director may bring an action for the collection or enforcement of civil penalties for the violation of any provisions of this act or a regulation promulgated pursuant to it. The action may be brought in summary manner pursuant to "the penalty enforcement law," N.J.S.2A:58-1 et seq. and the rules of court governing actions for the collection of civil penalties in the municipal court or the Superior Court where the offense occurred. Process in the action may be by summons or warrant and if the defendant in the action fails to answer the action, the court shall, upon finding a violation to have been committed by the defendant, issue a warrant for the defendant's arrest in order to bring the person before the court to satisfy the civil penalties imposed. In any action commenced pursuant to this section, the court may order restored to any person in interest any moneys or property acquired by means of a violation of this act or regulations promulgated thereby. In any action brought pursuant to this act, the director or the court, as appropriate, may order the payment of costs for the use of the State.
24. A State certified alarm contractor or holder of an employee's identification card shall surrender a suspended or revoked certificate of certification or card to the director within 72 hours following receipt of a written or personal notice to do so.
25. No municipality or county shall enact an ordinance or resolution or promulgate any rules or regulations relating to the certification, registration or licensing of alarm businesses. The provisions of any ordinance or resolution or rules or regulations of any municipality or county relating to the certification, registration or licensing of an alarm business are superseded by the provisions of this act. Nothing in this section shall be construed, however, to prohibit municipal regulation of door-to-door vendors or sales persons of burglar alarm, fire alarm or electronic security systems nor shall anything in this section be construed to prohibit or restrict municipal consideration of alarm business service proposals in consent proceedings under the "Cable Television Act," P.L.1972, c.186 (C.48:5A-1 et seq.).
26. Nothing in this act shall be construed to prohibit any person from engaging in the alarm business provided that person shall not be identified by the title "State certified alarm contractor," unless certified in accordance with the provisions of this act.
27. There is appropriated from the General Fund the sum of $25,000 to the Division of Codes and Standards of the Department of Community Affairs to implement the provisions of this act.
28. This act shall take effect immediately.
STATEMENT
This bill provides for the certification of alarm contractors by the Director of the Division of Codes and Standards in the Department of Community Affairs, with the advice of the Burglar and Fire Alarm Certification Advisory Committee established by the bill. Alarm contractors install, service and maintain burglar alarms, fire alarms and electronic security systems.
The bill requires applicants for certification to: be at least 18 years of age; meet the experience, financial responsibility and integrity qualifications established by the director; and pass an examination. The bill requires background checks by having fingerprints of such applicants and their employees checked by the Division of State Police and the Federal Bureau of Investigation.
Those applicants who qualify may call themselves "State certified alarm contractors." The bill does not prohibit any person from being in the alarm business, provided that person is not identified by the title "State certified alarm contractor," unless certified in accordance with the provisions of the bill. No grandfathering of alarm contractors is provided for in the bill.
"Burglar Alarm, Fire Alarm and Electronic Security Business Certification Act"; appropriates $25,000.